Maximising The Value and

Benefits of Enterprise
Architecture

Alan McSweeney
Objective

• To explain the benefits of implementing Enterprise

Architecture and to identify how the value of Enterprise
Architecture can be measured

December 4, 2010 2
Agenda

• Enterprise Architecture
• Issues in IT
• Why Enterprise Architecture
• Enterprise Architecture Measurement Framework
• Enterprise Architecture Value Measurement Programme

December 4, 2010 3
Basis for Enterprise Architecture

• IT systems are:
− Unmanageably complex and costly to maintain
− Hindering the organisation's ability to respond to business and economic changing
environment
− Not integrated
• Mission-critical information consistently out-of-date and/or actually incorrect
• A culture of distrust between the business and technology functions of the
organisation
• Unmanaged complexity in IT landscape leads to greater cost and less flexibility
− Issues include lack of standards, redundant applications, multiple platforms, and
inconsistent data
− Enterprise architecture defines a set of tools and methods to address this complexity
− While benefits of Enterprise Architecture are generally understood, measuring value
has been a challenge
• No easy answer but Enterprise Architecture approach is really worth considering
as a means of addressing these issues systematically

December 4, 2010 4
Enterprise Architecture Is/Does …

• What the organisation does today in terms of IT

• What the organisation wants to do in the future in terms of IT
• The Information Technology assets implemented today
• The Information Technology assets the organisation needs to have in
the future to best deliver its business goals
• Defines the framework outlining the vision for systems and
technology for the organisation
• Takes the business strategy and translates it into effective change of
the organisation
• Manages the Information Technology change roadmap
• Defines a set of overall principles, a future state vision and an
implementation and transformation plan
• Includes standards definitions and strategies for services

December 4, 2010 5
Scope and Elements of Enterprise Architecture
Enterprise Architecture

Business
Architecture
Information
Architecture

Enterprise IT Enterprise Enterprise

Enterprise Information Systems Security Architecture
Information Architecture Architecture Governance
Technology
Architecture Enterprise IT Solution
Technology Architecture
Infrastructure
Architecture

Software Architecture
Network and Communications Architecture
Storage Architecture
December 4, 2010 6
Key Messages Relating to Enterprise Architecture

• IT-business alignment has never been so important

• Alignment must be pursued in the context of
understanding business processes and priorities
• Service-orientation is not just for applications
• Service contracts are not just about function: they
encapsulate and communicate business priorities to IT
delivery organisations
• Enterprise architecture needs to be more inclusive,
sophisticated, flexible and integrated
• IT governance models must take all this into account
December 4, 2010 7
IT Too Often Fails to Support Changes Effectively

• Technology integration is costly, risky and complicated

• Information is everywhere but getting access to the right
information at the right time is very difficult
• Modifying system behaviour takes too long and changes
are difficult to communicate and implement effectively
• Much of IT system and operations expenditure is bloated
and fixed where operations run with excess redundant
capacity
• IT seen as a cost centre and not a source of business value

December 4, 2010 8
Business View of IT

• IT is viewed by the business as being

• Expensive
• Not connected with business strategy and operations
• Unresponsive to the changing needs of business
− Viewed as a critical issue as business agility and responsiveness are essential
for competitiveness
• Undefined and unclear as a business asset
− In terms of financial cost and value
− Return on investment and value for money from IT is relatively poor
− The capability the asset should deliver to the business
• Not delivering its promises
• Business change projects cost more and deliver less value than
expected or promised

December 4, 2010 9
Causes of Business View of IT

• Business applications tend to be implemented on a project

by project basis for specific purposes without overall
context
• Project benefits and success have been measured on
specific project costs, value and time to market without
measuring the long term enterprise-wide cost and value
• Average 75% of total IT budget on RTB operations and 25%
on new project investment
• Technology innovation has tended to deliver specific short-
term benefits but in the long term of making things worse
• Just look at previous technology innovations such as
client/server and 4GLs
December 4, 2010 10
Business Pressures on Information Technology

Globalisation

Business and
Technology Transparency
Changes

Information
Technology
Service
Regulation
Focus

Challenging
Consolidation Economic
Circumstances

December 4, 2010 11
Business Pressures are Driving Business and IT Change

• Globalisation
− Customers, partners, suppliers and greater competition
− Connectedness driving value chains
• Transparency
− Industry regulations, consumer pressure and competition driving openness
• Service Focus
− Differentiation and shareholder value increasingly derived from service experience
• Challenging Economic Circumstances
− Need to cut costs and demonstrate real savings
− Justify technology investments
• Consolidation
− Mergers, acquisitions, takeovers of failing companies
• Regulation
− Increased regulation and governance - business is turning to IT to help and IT struggling to respond
in many cases
• Business and Technology Changes
− IT becoming commoditised - growth of standards-based technology means that proprietary
solutions provide less differentiation
− Speed of technology change
− Outsourcing where the right outsourcing decisions require an understanding of how systems
contribute to the business
December 4, 2010 12
Why Enterprise Architecture

• Enterprise Architecture is part of a continuum and not a project

− Emerging technologies influence direction of architecture
− Must be subject to change management and governance
− Enterprise Architecture and IT governance should be considered together
• Principles of architecture should override IT hype and transient technology
− SOA may be dormant but services and an architectural component continues
− Cloud computing is just another step along the IT/Architectural evolution and another
perspective on the future state
• Need better understanding of integration of enterprise and solutions architecture
• Enterprise Architecture is about achieving a common language between business
and IT
• Enterprise Architecture driven out of the business strategy provides the enterprise
with the highest degree of alignment between the business and IT
• The concept of Enterprise Architecture has expanded well beyond the traditional
notion of technology architecture
− Now the architecture of the whole enterprise

December 4, 2010 13
Enterprise Architecture - Achieving a Common
Language Between Business and IT
• IT-business alignment requires collaboration between the business
and the IT organisation to align investment and delivery with
business goals and to manage business and technology change
• A common, agreed representation of business activity and goals
• A common, agreed view of how current and future IT provides
structured support to the business
• Key requirements and deliverables:
− Investment prioritised in terms of business need
− Systems that deliver value to the business
− Clear direction from the business about focus, strategy
− Collaborative approach to implementing business change

December 4, 2010 14
Enterprise Architecture and Strategy

• Provides the fundamental technology and process structure for an IT strategy

• Provides a strategic context for the evolution of enterprise IT systems in response to the
constantly changing needs of the business environment
• Allows individual business units to innovate safely in their pursuit of competitive advantage
within the context of an integrated IT strategy
• Enterprise Architecture is designed to ensure alignment between the business and IT
strategies, operating model, guiding principles, and the software development projects and
service delivery
• By taking an enterprise-wide, perspective across all the business services, business units,
business processes, information, applications and technology, Enterprise Architecture
ensures the enterprise goals and objectives are addressed as a whole way across all the
system acquisition/application development projects and their deployment into production
• Organisations use a business strategy driven architecture approach that focuses on
translating the key components of the business strategy into a future state vision and an
architecture road map they can implement
• Enterprise architecture is integrated with other strategic planning disciplines, such as
programme/project and application portfolio and management
• Enterprise Architecture ensures that the long-term vision of the business is preserved as
the enterprise builds new business capabilities and improves on old ones

December 4, 2010 15
Why Manage Enterprise Architecture?
Duplication in
Unmanaged Resources to
Complexity in IT Increased Cost Develop, Operate
Landscape and Maintain
Business Systems

Leads Cannot to Exploit

Reduced Economies of
To .. Flexibility Loading and
Scale

Delays in Complexity
Delivering Causes
Changes Difficulties and
Uncertainties

… Thus
Negatively Longer Design,
Impacting on Build, Test and
Business Delivery Time
Performance …
December 4, 2010 16
Why Manage Enterprise Architecture?

… To Address This
Complexity …

Provides a Set of
Tools and Methods

Provides…

Need to Measure
But Effectiveness of
Enterprise Enterprise
Architecture Architecture In
Order to Maximise
Business Value

December 4, 2010 17
Value of Enterprise Architecture
Appropriate
and Effective
Enterprise … Promotes
Architecture Actions and
Decisions That …

Align Information Technology Plans and Investments with

Business Priorities and Requirements

Result in More Integrated Operations Responsive to

Customer and Business Requirements

Promote a More Efficient and Effective IT Infrastructure

Facilitate Cross-Organisational Sharing of Enterprise

Information

Recognise Innovations and Best Practices Across the

Enterprise

Ensure Traceability of Decisions Back to Principles and

Rules
December 4, 2010 18
Enterprise Architecture Development and
Implementation Process

Architecture
Vision
Architecture
Business
Change
Architecture
Management
Data
Architecture

Information
Implementation Requirements
Systems
Governance Management
Architecture

Solutions and
Application
Architecture
Migration Technology
Planning Architecture
Opportunities
and Solutions

December 4, 2010 19
Key Elements/Subsets of Enterprise Architecture

• There are four key architectural subsets of an overall enterprise

architecture
− Business/Business Process Architecture - this defines the business strategy,
governance, organisation, and key business processes
− Data and Information Architecture - this describes the structure of an
organisation's logical and physical data assets and data management resources
− Solutions/Applications Architecture - this kind of architecture provides a
blueprint for the individual application systems to be deployed, their
interactions, and their relationships to the core business processes of the
organisation
− Technology and Infrastructure Architecture - this describes the logical
software and hardware capabilities that are required to support the
deployment of business, data, and application services and includes IT
infrastructure, middleware, networks, communications, processing, standards,
etc.

December 4, 2010 20
Issues in Key Elements/Subsets of Enterprise
Architecture
• High variability and lack of standardisation across
Business and business units (such as ERP templates), driven by
Business Process changes in business strategy, governance, organisation
Architecture and process
• Inconsistent data definitions, multiple databases,
Data and releases and configurations which result in duplication
Information of licenses, duplicate and inconsistent information,
Architecture complexity in testing
• Multiple vendors, multiple instances and versions
Solutions and which add complexity in procurement, development
Applications and release management, resulting in higher costs and
Architecture longer time to market
• Multiple operating environments, multiple hardware
Technology and vendors and types, leading to higher maintenance and
Infrastructure personnel costs, greater instability and time-to-fix
Architecture

December 4, 2010 21
Benefits of Enterprise Architecture

• Align IT and business for planning and execution purposes

• Optimise resources - technology, people and processes
• Increase business interoperability
• Reduce complexity in IT infrastructure
• Improve business agility to support dynamic change
• Drive re-usability of architecture models and best practices
• Streamline informed decision making
• Standardise IT for cost effective delivery of services
• Eliminate duplication and redundancy and reduce cost of ownership and return on
investment
• Reduce risks for future investment
• Faster, simpler and cheaper procurement
• Manage information/data and knowledge as a corporate asset
• Manage change based on a clear understanding of its impact
December 4, 2010 22
Risks of No Enterprise Architecture

• Inability to rapidly respond to challenges driven by business changes

• Lack of commonality and consistency due to the absence of standards
• Lack of focus on enterprise requirements
• Lack of common direction and savings due to synergies
• Incomplete visibility of the current and future target enterprise architecture vision
• Inability to predict impacts of future changes
• Increased gaps and architecture conflicts
• Dilution and dissipation of critical information and knowledge of the deployed
solutions
• Rigidity, redundancy and lack of scalability and flexibility in the deployed solutions
• Lack of integration, compatibility and interoperability between applications
• Complex, fragile and costly interfaces between applications
• Fragmented and ad hoc software development driven by a tactical and reactive
approach

December 4, 2010 23
Issues in Developing Enterprise Architecture

• Issue 1 - Concentrate on the Plan

− Focus too intently on analysis and strategy
− Avoid committing to implementing solutions
− Architecting inhibits value delivery
• Issue 2 - Jumping to the Solution
− Engineering solutions and data implementation
− Technology has difficulty aligning with enterprise
− Reinforces gap between business and IT
• Challenge is to balance evolving strategy, goals, constraints
with technology solutions

December 4, 2010 24
Justifying Investment in Enterprise Architecture

Investment in
Enterprise
Architecture

… Involves
Challenges …
Impact of Different
Longer Term Reasons for Investment in Investment
Payback than Technical Enterprise Approaches
Other IT Decisions Difficult Architecture Needed Across
Investments to Communicate Difficult to Enterprise
Measure Architecture

December 4, 2010 25
Risks Inherent Investment in Enterprise Architecture

Enterprise Architecture Investment Spectrum 

Too Little or On Investment in Too Much Means

Wrong Areas Means Enterprise Enterprise
Operating Costs Architecture is Architecture
Increase as Sufficient to Deliver Inhibits Flexibility
Architecture is Too Results Without and Imposes Too
Complex, Ineffective, Imposing Unnecessary Many Constraints -
Old and Expensive to Restrictions or IT Becomes
Operate and Support Overhead Inefficient

“Goldilocks” Zone 
December 4, 2010 26
Enterprise Architecture and Enterprise Architecture
Management
Enterprise Architecture
Enterprise Architecture
Management

Defines a framework Provides the models and

outlining the vision for practices for defining,
systems and technology for planning and managing the
an organisation business and IT capabilities

Defines a set of overall Includes business, data,

principles, a future state applications and technology
vision and a transformation models and principles that
plan support assessments and
investment trade-off
Include standards decisions, as well as tactical,
definitions and strategies for project-level designs and
individual IT services decisions

December 4, 2010 27
Relationship Between EA Implementation and
Operation Components

Function
Develops
EA Enterprise
Enterprise Architecture
Architecture Function/
Capability

EAM Measures and

Function
Manages the Extent and
Operation of the EA and Implements
EA
Provides Governance

Enterprise
Enterprise
Architecture
Architecture
Implementation
Management
and Operation

December 4, 2010 28
Outcomes of Effective Enterprise Architecture
Implementation and Operation
• Specification application architecture requirements
• Definition of architecture methodology
• Standardisation of information elements shared between
systems
• Modeling of information relationships and lifecycles
• Deployment integration infrastructure
• Standardisation of hardware and core software platforms
• Building of reusable application components

December 4, 2010 29
Enterprise Architecture Linked to Overall Business
Strategy
Business Business
Processes Systems

Business
Business Business Enterprise Solution Service
Operational
Strategy Objectives Architecture Delivery Delivery
Model

• Enterprise Architecture aligns

business strategy, business processes Domain
Architecture
and IT and provides governance to
ensure business value and
competitive advantage is delivered
• Enterprise Architecture creates Project
alignment, consistency and unity Architecture
between objectives at various levels

December 4, 2010 30
Enterprise, Domain and Project Architectures

Overall
Business Enabling IT • Enterprise Architecture
Strategy and
Objectives
Projects defines and manages
overall organisation
architecture
Individual
Business Enabling IT • Domain Architecture(s)
Unit
Objectives
Projects are subsets of Enterprise
Enterprise
Architecture Architecture to enable
individual business
unit/domain objectives
Domain
and targets to be met
Architecture
• Project Architecture(s)
enable project level
Project objectives to be met
Architecture

December 4, 2010 31
Enterprise Architecture Capability

• The function that enables an organisation to create, adapt,

enforce and develop enterprise architecture
− Equally a part of the business as it is part of IT
− Role is as much about controlling and focusing IT expenditure as it
is about identifying necessary change
• Ensures that the IT landscape is aligned to the business
vision and continues to be aligned to the business strategy
and operational needs
• Ensures that IT solutions can continuously react to the
changing needs of the business
• Ensures that the business and financial case for change is
made

December 4, 2010 32
Subsets of Overall Enterprise Architecture
Business and
Business Process
Architecture

Technology and Data and

Infrastructure Information
Architecture Architecture

Application
And Solution
Architecture

December 4, 2010 33
Layers of Enterprise Architecture
Overall Enterprise Architecture Context, Security, Governance

Business and Data and Solutions and Technology and

Business Process Information Applications Infrastructure
Architecture Architecture Architecture Architecture

Conceptual Overall Network

View Defines Business and Information Application and
What Is Shared Services Services Designs Infrastructure
Required
Design

Logical Business Data Sources, Infrastructure

View How
Targets and Business Services and
It Should Be Processes
Flows Applications Components
Implemented Designs

Physical Application Technical Designs

View Defines Business Database and
Designs, and
What Should Be Processes Message Designs
Implemented Specifications Specifications

December 4, 2010 34
Enterprise Architecture Management

• Enterprise Architecture needs be a guided strategy that is aligned

with the needs of the business
• Enterprise Architecture Capability enables an organisation to create,
adapt, enforce, and develop its technical architecture
• Enterprise Architecture Management provides a means to measure
the effectiveness of Enterprise Architecture and assist organisations
increase business value delivered by IT systems
• Enterprise Architecture Management is a capacity rather than a
programme or an end state architecture
• Enterprise Architecture Management provides a capability model
with maturity levels for an organisation to achieve desired level of
Enterprise Architecture maturity and value
• Enterprise Architecture Management provides a systematic
coherent approach to defining, planning, and measuring an
organisation's IT assets over time

December 4, 2010 35
Why Invest in Enterprise Architecture

Enable Enable faster and easier Enable faster response

Greater collaboration through to business changes and
Business application and data new demands at lower
Agility and
Increased Flexibility integration cost
Business
Value IT projects will have a
greater success –
Solutions will be
Increase Use delivered on time, on
delivered at lower
of IT budget and to user
implementation and
requirements – reducing
operational costs
cost through avoidance
of rework
Increased Success in
Reduced IT Costs
Solution Delivery

Reduced IT Costs
December 4, 2010 36
Why Invest in Enterprise Architecture

• Business cannot understand why relatively Solution Lifecycle Costs

straightforward business changes are costly,
risky and slow to implement

• Run The Business improvements and Change

The Business initiatives are restrained or
prevented by the IT function because to the
delay and high cost of implementing changes
Post
Solution Implementation
• Lack of Enterprise Architecture means Implementation Costs – Support,
operational and support costs of solutions are Costs Operation
kept high
− Reduces budget available to be used elsewhere

• Situation worsened by projects attempting to

deliver in an isolated fashion to bypass
inhibitors resulting in further constraints for
subsequent projects in the medium term

December 4, 2010 37
What Manage Enterprise Architecture Value?

• Understand the current state of Enterprise Architecture

− Create an accurate view of the current capabilities
− Define the activities to be worked on in partnership with the business
− Create a flexible Enterprise Architecture framework that will govern future initiatives
• Validate Opportunities to Create Business Value
− Define the initiatives that will create the most value
− Define a realistic and achievable set of objectives
− Define value measurement to justify commitment and investment
• Develop a a Flexible Initiative and Project Portfolio
− Define the set of initiatives and projects that achieve objectives
− Positively vet programmes and projects for value
− Create programmes of work that are justified, measured and managed for value
• Recognise that Enterprise Architecture is strategic rather than tactical
− Requires the participation in partnership of business and IT
− Reach of Enterprise Architecture may extend beyond the organisation

December 4, 2010 38
Framework for Enterprise Architecture Management

• Framework provides a means for assessing the Enterprise

Architecture maturity level within an organisation
• Can be used to achieve a target level of organisational
Enterprise Architecture maturity and therefore value
• Provides a means for continuously assessing and adjusting
Enterprise Architecture efforts
• Development of Enterprise Architecture needs be a
focussed and managed strategy aligned with the business

December 4, 2010 39
Using Enterprise Architecture Management
Framework
• Define the scope and role of Enterprise Architecture and
its management within your organisation
• Understand your current capability maturity level
• Systematically develop and manage key capabilities for
effective and appropriate enterprise architecture
management that adds business value
• Evaluate and manage progress over time using a
consistent set of value-oriented metrics

December 4, 2010 40
Using the Enterprise Architecture Management
Framework

Define the scope and role

of Enterprise Measure and understand
Architecture and its your current capability
management within your maturity level
organisation

Systematically develop
and manage key
Evaluate and manage
capabilities for effective
progress over time using
and appropriate
a consistent set of value-
enterprise architecture
oriented metrics
management that adds
business value

December 4, 2010 41
Dimensions of Enterprise Architecture Management
Framework
Enterprise
Architecture
• Measure state of Practices
Enterprise Architecture
along three dimensions
− Practices
− Planning
− People
• Define facets of each Enterprise
dimension Architecture
Planning
• Measure each facet in
terms of:
− Associated processes and
their state of development
− Scope or extent within the Enterprise
organisation Architecture
Personnel
December 4, 2010 42
Measurement of Value of Enterprise Architecture

• Direct link between Enterprise Architecture and real value

can be difficult to demonstrate
• There is a time lag between implementation and results

December 4, 2010 43
Measurement of Value of Enterprise Architecture

• Define Enterprise Architecture value measurement areas

• Identify measurement process
• Measure
− Establish current baseline
− Define target
− Measure results against baseline and target

December 4, 2010 44
Measurement Framework for Enterprise
Architecture Management
Enterprise Architecture
Management Framework

EAM Dimension 1 - EAM Dimension 2 - EAM Dimension 3 -

Enterprise Architecture Enterprise Architecture Enterprise Architecture
Practices Planning Personnel

1.1 Architecture 3.1 Organisation

2.1 Strategic Planning
Framework Structure and Skills

1.2 Architecture 3.2 Communication and

2.2 Architecture Planning
Processes Stakeholder Management

1.3 Architecture
Governance

1.4 Architecture Value

December 4, 2010 45
Measurement Framework for Enterprise
Architecture Management
Architecture Framework of standards, templates and specifications for organising
Framework and presenting business and technical architecture components
Architecture Methodology for defining, developing and maintaining architecture
Enterprise Processes components
Architecture
Practices Architecture Principles, decision rights, rules and methods to drive architecture
Governance development and alignment in the organisation
Architecture Value Defining, measuring and communicating the value and impact of
architecture to the business
Strategic Planning Using architecture principles and blueprints to align business needs
Enterprise with IT capabilities, define portfolio strategy and direction and allocate
Architecture resources
Planning Architecture Defining vision and roadmap for various IT domains by anticipating
Planning business needs and trends, and developing architecture components
Organisation Defining, planning, and managing roles, responsibilities and skills for
Structure and Skills architecture management
Enterprise
Architecture Communication
and Stakeholder Managing communication and expectations with business and IT
Management stakeholders interested in or influenced by architecture management

December 4, 2010 46
Measurement Framework for Enterprise
Architecture Management
• Measure in terms of
− Processes – those processes associated with Enterprise
Architecture Management and their state of development – how
well-defined and effective are the processes
− Reach - scope or extent of Enterprise Architecture Management
within the organisation – how widely used

December 4, 2010 47
 Enterprise Architecture Management Assessment
Framework
Processes are
Optimised,
Flexible, Adaptable
and Lean
Processes are
Managed and
There is
Continuous
improvement
Enterprise
Processes are
Architecture Repeatable and
Processes Consistently Used
Across Teams and
Projects

Basic Processes and

Associated
Collateral in Place

Ad-Hoc Processes
Defined and Driven
by Individuals

Across the Beyond the

Within Organisation, Organisation
Within an IT Across the IT
Individual Including (Suppliers,
Domain Function
Projects Business and IT Partners,
Functions Customers)

December 4, 2010 Enterprise Architecture Reach 48

 Detailed Measurement Framework for Enterprise
Architecture Management
Enterprise Architecture
Management Framework

EAM Dimension 1 - EAM Dimension 2 - EAM Dimension 3 -

Enterprise Architecture Enterprise Architecture Enterprise Architecture
Practices Planning Personnel

1.1 Architecture 3.1 Organisation

2.1 Strategic Planning
Framework Structure and Skills

Processes Reach Processes Reach Processes Reach

3.2 Communication and

1.2 Architecture
2.2 Architecture Planning Stakeholder
Processes
Management

Processes Reach Processes Reach Processes Reach

1.3 Architecture
Governance

Processes Reach

1.4 Architecture Value

Processes Reach
December 4, 2010 49
Complete Measurement Framework
Processes
Enterprise
• Three Architecture
Planning
dimensions x
two aspects Processes
Enterprise
Architecture
Personnel
Reach Processes

Reach

Enterprise
Architecture
Reach Practices
December 4, 2010 50
Enterprise Architecture Management Maturity
Level 1 Level 2 Level 3 Level 4 Level 5
Prioritization of project Architecture a key Business / IT planning
Strategic Planning None Project-based portfolio based on input to joint enables efficiency, agility in
roadmap Business / IT planning extended enterprise

Limited vision and Architecture planning Continuous Includes extended

Planning Architecture Planning Project-based
roadmap process established improvement enterprise capabilities

Project-based Central architecture Funded from efficiency Funding by margin on

Funding by transaction
Architecture Funding allocation fund gains services

Limited framework - Covers Information and

Consistently adopted Framework shared
Architecture Framework None covers some process, but adoption not
internally externally
information consistent

Defined processes Defined processes Defined processes with

Project-based Defined processes
Architecture Processes primarily focused on across business and IT clear ability to adapt and
processes across IT domains
infrastructure domains extend
Practices
Some review principles Shared governance Business / IT governance
None / project- defined for some Defined IT governance
Governance model with Business continuously improved to
based components boards and processes
and IT respond to change

Defined and measured

None / project- IT cost performance Business outcomes and IT
Value and Measurement IT cost metrics business objectives,
based metrics performance metrics
performance metrics

Organization Structure No roles, Formal technology Formalized roles and Clear professional Pro-active development
and Skills responsibilities roles within projects responsibilities career track with external input

People Pro-active
Communication and Key stakeholders Regular consultation communication and Collaboration with
Project-based
Stakeholder Management identified and informed with business feedback with extended enterprise
business
December 4, 2010 51
Assessing Current and Future Desired Architecture
Management Maturity
1 - Ad-Hoc 2 - Defined 3 - Repeatable 4 - Managed 5 - Optimised
Architecture
Framework
Architecture
Enterprise Processes
Architecture
Practices Architecture
Governance
Architecture
Value
Strategic
Enterprise Planning
Architecture
Planning Architecture
Planning
Organisation
Structure and
Enterprise Skills
Architecture
People Communication
and Stakeholder
Management

Current EA Competency Maturity Level Desired Future EA Competency Maturity Level

December 4, 2010 52
Measuring Maturity and Importance

5.0

4.0

Level Organisation
Structure
Of and Skills Architecture Architecture
3.0 Processes Planning
Maturity
Communication
Architecture and Stakeholder
Value Management

2.0
Architecture
Governance Architecture Strategic
Framework Planning
1.0
1.0 2.0 3.0 4.0 5.0

Level of Importance
December 4, 2010 53
Benefits of Increasing Enterprise Architecture
Management Maturity
• Measuring the true impact of increasing Enterprise
Architecture Management maturity is hard to achieve
• IT architecture simplification can be one of the largest
contributors tor IT cost reduction (in the range of 5%-18%)
but it has a long lead time - up to 2 years

December 4, 2010 54
Outcomes of Effective Enterprise Architecture
Management
Modeling Information
Relationships and
Standardising Lifecycles
Information Elements Deploying Integration
Shared Between Systems Infrastructure

Standardising Hardware Specifying Application

and Core Software Architecture
Platforms Requirements

Building Reusable Defining Architecture

Application Components Methodology

Reduced Costs & Service

Improvements

December 4, 2010 55
Impact of Effective Enterprise Architecture
Management Can Be Difficult to Quantify
Primary/ Immediate Secondary/ Medium- Tertiary/ Long-Term
Benefits Term Benefits Benefits
Lower integration costs (and Improved responsiveness to business
Rationalised application portfolio
corresponding project costs) needs

Shorter integration time (and Integrated infrastructure and

Better IT and business decisions
corresponding project time application management
Increased hardware utilisation
Renegotiation/consolidation of supplier
and deferred or eliminated Higher IT productivity
contracts
hardware spend

Simplified development Better information quality Reduced operational risk

Improved operational efficiency and

Simplified analysis and testing Faster access to information
effectiveness

Eliminated or reduced spend on

Higher application development
redundant application purchase Sustained cost reductions
productivity
and development
Leverage new capabilities Increase flexibility within the business
Lower capital spend
for competitive advantage and IT
December 4, 2010 56
Impact of Effective Enterprise Architecture
Management Can Be Difficult to Quantify

Primary/ Secondary/ Tertiary/

Immediate Medium-Term Long-Term
Benefits Benefits Benefits
Scope and Benefits of Enterprise Architecture Over Time

Directly Difficult to
Quantifiable Define Intangible

Ease of Measuring Benefits of Enterprise Architecture

December 4, 2010 57
Measuring Quantitive and Qualitative Value from
Enterprise Architecture
Measures of Value
from Enterprise
Architecture

Quantitive Measures of Qualitative Measures

Value of Value

Reduced Project Risk Reduction in project time and cost Improved Business Reductions in faults and overspend
over-runs both without scope or
and Complexity Requirements Delivery due to incorrect requirements
quality reduction

Improved Project Solution quality, delivery on-time Better Alignment with Quality-related feedback from the
and within budget and to user
Success Business business through regular surveys
satisfaction

Cost Control and Measure through feedback where

Measuring return on projects over Increased Agility and IT is viewed as an partner and
Improved Return on lifetime enabler with the business and not
Competitiveness
Investment just a cost and constraint

Reduced Costs for Measure through effect with the

Complete operational costs of IT to Improved Business business becoming better
Business As Usual reflect the total cost of ownership connected and greater reach of
Knowledge
Operations processes

Enable Delivery of IT Sustained delivery of the IT

Strategy which should also be
Strategy concerned with delivering value
December 4, 2010 58
Focussing on Areas of Low Maturity and High
Importance

Fourth Areas To Focus Second Areas To Focus

High On To Generate On To Generate
Maturity
Improvements Improvements

Maturity

Low Third Areas To Focus On First Areas To Focus On

Maturity To Generate To Generate
Improvements Improvements

Low View of Importance High View of Importance

Importance
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Focussing on Areas of Low Maturity and High
Importance
• Use Enterprise Architecture measurement framework to
identify areas of greatest return on investment

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Enterprise Architecture Value Measurement
Programme
Feedback on Measurement Framework

Plan Enterprise
Define
Measure Analyse Architecture
Enterprise
Enterprise Enterprise Implementation Execute
Architecture
Architecture Architecture /Enhancement Programme
Measurement
Value Value Measures Programme of
Framework
Work

Measure Delivery and Results

• Does the Enterprise Architecture programme have a measurable impact on the IT
investment portfolio?
• Does the Enterprise Architecture programme lead to measurable improvements
of performance?
• Is there a clear relationship between Enterprise Architecture programme and
business services?
• Does the Enterprise Architecture programme result in measurable cost
savings/avoidance?

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Summary

• Appropriate Enterprise Architecture can deliver significant

business benefits
• Comprehensive Enterprise Architecture value
measurement framework is needed to link Enterprise
Architecture to business benefits

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More Information

Alan McSweeney
[email protected]

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